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Private entities with long-term leasing agreements must update their accounting systems for updated rules that go into effect for annual reporting periods after December 15, 2021. The updated guidance requires the full magnitude of long-term lease obligations to be reported on balance sheets. It will also require expanded disclosures about the amount, timing and uncertainty of cash flows related to leases. When this guidance took effect in 2019 for public companies, they learned that it took much more time and effort than expected. Don’t wait until year end to evaluate how these changes will affect your organization. We can help get you on track to meet the 2022 implementation deadline.
If you own a valuable piece of art, you may wonder how much of a tax deduction you can get by donating it to charity. Several different tax rules may apply with such contributions. A charitable contribution of a work of art is subject to reduction if the charity’s use of the work of art is unrelated to the purpose that’s the basis for its qualification as a tax-exempt organization. The reduction e quals the amount of capital gain you’d realize if you sold the property instead of giving it to charity. In addition, your deduction may be limited to 20%, 30%, 50%, or 60% of your contribution base, which usually is your adjusted gross income. Other rules may apply. Contact us to discuss the rules.

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